Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Polperro. Clearly, the period of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Polperro have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give due consideration before delaying your Polperro lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Polperro lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the landlord of her first floor flat in Polperro, Courtney started the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction was finalised in April 2006. The landlord’s charges were restricted to a tad over four hundred GBP.
Last Spring we were called by Mrs Rhiannon James , who completed a studio flat in Polperro in July 2009. The question was if we could estimate the price could be for a ninety year lease extension. Similar properties in Polperro with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease lapsed on 13 April 2087. Given that there were 61 years outstanding we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus professional charges.
Last Christmas we were e-mailed by Mr N Campbell , who bought a recently refurbished apartment in Polperro in August 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Polperro with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed annually. The lease termination date was on 14 February 2098. Given that there were 72 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.